TARIFF ON ICT PRODUCTS - ECONOMY
News: India-EU
ICT case: WTO agrees to wait till Sept. 19
What is in the news?
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Recently, the dispute
settlement body of the World Trade Organization (WTO) agreed not to adopt a
ruling against India’s import duties on certain information and technology
products until September 19, following a request by the country and the
European Union (EU).
Key takeaways from the news:
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Both regions have requested this as they are engaged in
resolving the dispute bilaterally.
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The dispute panel of the WTO had ruled that the import duties imposed by
India on certain information and technology products violate global trading
norms.
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The EU and India have
said that the additional time would help facilitate the resolution of the
dispute.
What is the issue between India and the EU on certain
information and technology products?
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While the EU is using a tariff rate quota (TRQ) to
protect its steel industry from Chinese imports, India has raised tariffs to
boost the manufacturing of electronic items in the country.
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This comes after the WTO
panel upheld all EU claims against India and found that India’s tariffs of up
to 20% on certain ICT products, such as mobile phones, were not in line with
its WTO commitments.
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The Indian government
estimates that the WTO panel’s report will have little impact on India’s ICT
products as the EU’s share of total Indian imports of ICT products in 2022 was
3.03% or $550 million.
World Trade Organization:
About:
●
It is the only global
international organization dealing with the rules of trade between nations.
Process of establishment:
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The Uruguay Round,
conducted from 1987 to 1994, culminated in the Marrakesh Agreement, which established the World Trade Organization
(WTO).
●
The WTO incorporates the principles of the GATT and provides a
more enduring institutional framework for implementing and extending them.
●
The GATT 1994 is an international treaty binding upon all WTO Members.
It is only concerned with trade in goods.
Relations with UN:
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It is not an UN specialized body.
Structure:
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Ministerial
Conference
○ The
topmost decision-making body of the WTO is the Ministerial Conference, which
usually meets every two years.
●
General
Council
○ The
General Council is the WTO’s highest-level decision-making body located in
Geneva, meeting regularly to carry out the functions of the WTO.
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The
Trade Policy Review Body:
○ The
WTO General Council meets as the TPRB to undertake trade policy reviews of
Members under the TPRM and to consider the Director-General's regular reports
on trade policy development.
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Dispute
Settlement Body:
○ The
General Council convenes as the Dispute Settlement Body (DSB) to deal with
disputes between WTO members.
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Appellate
Body:
○ The
Appellate Body was established in 1995 under Article 17 of the Understanding on
Rules and Procedures Governing the Settlement of Disputes (DSU).
○ The
DSB shall appoint persons to serve on the Appellate Body for a four-year term.
○ It
is a standing body of seven persons that hears appeals from reports issued by
panels in disputes brought by WTO Members.
○ The
Appellate Body can uphold, modify or reverse the legal findings and conclusions
of a panel, and Appellate Body Reports, once adopted by the Dispute Settlement
Body (DSB), must be accepted by the parties to the dispute.
Members:
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Totally 164 members are in
the WTO.
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India
is a founding member.